# Fashion Industry Fails on Living Wages, New Report Finds

> The 2026 Baptist World Aid Ethical Fashion Report reveals 87% of assessed companies cannot confirm living wages for garment workers, despite widespread policy commitments.

By PrimaryBrief newsroom · Published 2026-10-22T19:44:55.424898Z
Canonical: https://primarybrief.com/article/fashion-industry-fails-on-living-wages-new-report-finds-d7cb1fb1

The 2026 Baptist World Aid Ethical Fashion Report, released around October 19-20, 2026, found that 87% of the 138 assessed fashion companies could not verify that workers in their facilities were paid a living wage [6][8][9][21]. This finding comes despite 93% of these companies having formal policies regarding sustainability and labor rights [6][8][21].

This lack of verifiable living wages directly impacts garment workers globally, raising concerns about their economic security and well-being. For consumers, the report highlights a persistent gap between corporate ethical commitments and actual practices, making it difficult to identify truly responsible fashion choices.

## What the records show

Baptist World Aid Australia's 11th Ethical Fashion Report evaluated 138 companies, representing 543 global brands [8][10][21]. Researchers assessed company policies, practices, and performance across 48 ethical and environmental indicators, generating and analyzing more than 15,000 data points [8][16][17][18][19][21]. The report found that overall industry average scores for ethical practices improved by only 0.2% in the past two years [11]. Worker well-being and rights were identified as the lowest-scoring areas among the five assessment topics [12].

Only 13% of the surveyed fashion companies could show evidence of paying a living wage to any workers in their supply chain [10]. Furthermore, only 4% of companies had committed to paying living wages where finished clothing is manufactured [12]. Brands like Mighty Good Basics, Patagonia, and KMD Brands received high scores, while several fast fashion and marketplace companies received zero [4]. Ghanda and Windsor Smith were among the lowest-rated brands [16]. The report also noted that footwear, surf, skate, and streetwear brands performed below the industry average on worker rights and environmental practices [13].

## What changed and for whom

The report indicates minimal improvement in ethical practices across the fashion industry over the past two years, with supply chain progress largely stalled [3][4][11]. This means the gap between corporate policy commitments and the actual conditions for garment workers persists [6][8][21]. Consequently, workers continue to face challenges in securing living wages and safe working conditions, despite the existence of company policies aimed at addressing these issues [6][8][21]. For consumers, the findings suggest that identifying brands that genuinely uphold ethical standards remains difficult due to the lack of verifiable implementation [10].

## What the subject has said publicly

Melissa Lipsett, CEO of Baptist World Aid Australia, commented on the report's findings. She stated, "Policies alone don't change workers' lives. What matters is whether those commitments translate into fair wages, safe conditions and protected rights" [20][22]. Lipsett also emphasized the organization's foundational belief, saying, "We believe every person is made in the image of God and has inherent worth. Our desire is to see garment workers and their families experience the fullness of life God intends" [20][22]. She added that consumers and policymakers have influence and should hold brands to higher standards [24]. Lipsett clarified that the report is not about "expecting individual consumers to solve the problems of the global fashion industry" [25].

## What we could not confirm

PrimaryBrief could not confirm specific responses from low-scoring brands regarding the report's findings. We also could not confirm any immediate policy changes or commitments from governments or industry bodies in direct response to this specific report.

## Evidence cited
1. Ethical practices in Australian fashion industry stalling, report finds (www.abc.net.au) — https://www.abc.net.au/news/2026-10-20/ethical-fashion-report-australian-industry-stalling/107274548
2. (October 19 2026) Ethical practices in Australian fashion industry stalling, report finds ABC News & Headlines – Australian Broadcasting Corporation. (dailybspark.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHmNBKCAEPrcbbXKwok44d4vPKwNINp4dMf-K7ynEdI3k8nCvcGyWM18lgAjcQM7DIZCouU9_ERblhFLkXW4ZI_QXxWuNyrMADKMhgRtlCNUntv4OlmhJNRGtuAkYB5AGH9ykpUqYoW2mV_Ki15c1xfzirn7un_88nnqN9wetFbMhBluUcZ_5u4eRodiZj4_0V3iq9Nq4oGOyeFcQtriHhEZr1r5AJ_sKfVwHvRR7A2j98Fxj5hrGIVcoCGBiuQjAtUyzxbmQKqSAxpB10eGLThRmGjqSaLgg==
3. (October 19 2026) Tomedia/ NewsroomAustralian business & politics. Live updates. Share story. Back to newsroom. Business. Fashion brands fail to show ethical commitments being met, new report shows. The Baptist World Aid Ethical Fashion Report finds there has been minimal improvement in sustainability and ethical practice in the industry. ABC News Business RSSBy Liana Walker Published 19 Oct, 12:09 pm. ABCABC News Business RSSFashion brands fail to show ethical commitments being met, new report  (tomedia.com.au) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHLPCPjPAIhfCl03mI3qghU122ygB7tj-Khr_wpdO4Xw4td1CVgWEn9XKmkzDpt1gNaMQqpx7oDBywflpNXtDRx4ZmLFfTcEuNfstR6cc-LAvOBL6maxtWECtM7jRrSbJtd26lGbNHqMf0=
4. (October 21 2026) A major assessment of 543 brands has found supply chain progress has all but stopped, with worker empowerment and living wages remaining the industry's weakest areas. Brands including Mighty Good Basics, Patagonia and KMD Brands scored highest in Baptist World Aid Australia's latest Ethical Fashion Report, while several fast fashion and marketplace companies received zero. SYDNEY – The global fashion industry's ethical and environmental performance has stalled, according to ... (ecotextile.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEv3XFbzdL3Ksb9ugJVLC_xhTpMxC6PJ5KGEf9mW9c8Hm1xCxOsazSNJYDlWgzW6C0cErRqa-5xMhv3dQH-qYCwVdBdiUrf3iO3Ic1U-ZUDrVbirtD6J57yWCQZ1XYGBrK4SkFndcva_NH0vwEtxA1b82KsiBx7l3LuQNZvNg12x9E7p7OKP0d27H6Iska52dF9vOqRSzE2bulT99qmm1z3BLZbVltqEYlzH4FJttP6pw==
5. (October 18 2021) Major Australian department store chain Myer is disputing its poor grading in an ethical fashion assessment which found the company is falling short when it comes to reducing its environmental impact and ensuring its supply chains are free of modern-day slavery. Other major Australian names such as Bardot, RM Williams and Quicksilver also received failing grades in the same categories in this year's Ethical Fashion Report by the Baptist World Aid Australia. Fashion Virtual real (theguardian.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQG6cFtuGMyPOczya25iaSzuomYyEGUHZnc0itPWfq38rhVB8x8bZRpou-bsu-MKga2QSym_8ReXxW-CLuEZVFiS0_kDFikXvSuFc5C4RvA-1mEsgp0zt6b84csGeMSOIeUmg1vhlc4toMit3fmVds_RAe2ThHOMl5XdR5mim8F-31-uOqJPDK02GtcvtdsmIHS4jVjhySg3YmmRgo7bHagiQbxu882IslEZd3K4Bu4Qua91y5WAx-IEyZYjHftGbMY=
6. (October 21 2026) A new report from Baptist World Aid Australia reveals a significant disparity between the public commitments of global fashion brands and the actual conditions of their garment workers. The 2026 Ethical Fashion Report, which evaluated 138 companies, found that 87 percent of assessed brands could not verify that their employees were paid a living wage. While 93 percent of companies maintain formal policies regarding sustainability and labor rights, the industry's average score i (gospeller.org) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGpUvqj1YxIbvabZWvK5-f3qgFrroKecLusLjwYUgzfJdi11ISHaGxYPlAG-6ufynvWI-hc0IRSKDvdPKu4xUUxFGrd7NIeq6E5bPiHSnmlKm6WfHUgawprxTsUxbOZAsVIGljwTnYQpaYHw9_5RjEE9olit31SOrqkRZCVLFILvOVzRhCTWOe5uDXJyqiVj0oB6Lvd86PxdwSdTS1VMBEm-Orq8tr0aA==
7. (October 09 2026) Partner With Us. In Your Church · In Your School · In Your Business. Advocacy. Safer World For All. Join Our Team. Work with us · Volunteer with us. Ethical Fashion. ExploreSee all. Get Informed. Ethical Fashion Guide · Ethical Fashion Report · Podcast. Take Action. Tips & Resources · For Schools · LoginLoginGive TodayGive Today · Ethical Fashion|09 October 2026. Is It Ethical To Buy Fast Fashion? Fast fashion brands are evil, right? Well, it's not quite that simple. Here's how (baptistworldaid.org.au) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHP6hupjKjUIi2Gj1LUQNHzspsM7abpHuChfyzOkP6gXQHwRfqhEiDQKHZZqxx474upG8-5Kf6_0q2Zhd6KPjM4str-sAZXZ4KBge8nxbqjGejTf5XJ5Y9N2KZkUeDPWr1ET5zbP4vY2G4qXf3nVFj4CsTuzsHxhc8RsOUHzAk8Ppktcs=
8. (October 21 2026) A major Baptist report on global fashion supply chains has highlighted a persistent gap between corporate commitments and progress for garment workers, finding that 87 percent of assessed companies could not demonstrate that workers in any of their facilities were paid a living wage. The 2026 Ethical Fashion Report, published Oct. 20 by Baptist World Aid Australia, assessed 138 companies representing 543 global brands across 48 ethical and environmental indicators. Despite 93 p (christiandaily.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF5oei045tkcDCPKalehHlzYYlLWiNe4O4Pq4beLy9lAJtTwSmcaHRRRMOuN0tLpZ3LTbyDq3EOHRx7k3lbAyT1Ciy7p95lpBmSNdO-v1UCr0HpjTE_5kMRYJhN_K5IFiprAlL61rGeAAZFO8QlxcZ46lPTLOyqfCwjL_XsEWrU_IJBIApTfE5Pk5i4lBdfav0_fSZunBmKqmQkzUcZa55RciQtfPzPTrf0Fj-AaMfuy0e
9. (October 19 2026) Geelong, Australia. Most fashion industry companies have put in place policies to protect worker rights in their supply chains but almost nine out of 10 still cannot provide any evidence workers are being paid a living wage. Those are among the findings of the 2026 Ethical Fashion Report which assessed 138 companies representing 543 fashion brands around the world. Indian textile workers. PICTURE: Courtesy of Baptist World Aid. Compiled by Baptist World Aid Australia, the repor (sightmagazine.com.au) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHMCqPcz02tIwBl1low17w_9RrcUcHX4dXxaJfks685rqLRZ7coirJWII1d4Q7eVHcHwxiPlE6Y4YM6--zzmDv16FF9wiW5IXSnEcXqkJSSbQYFP0x6-VYOZXivWYsXFVzWZrvKXo8DlHzBvNWYkylNVX8cV7fXpZAsw4OALBC-sc4i6S8G5jOSx85svdjU9IcfIkImnG0TQdYGO7hmEFC1SNAZOXKFprIvZy4JTi8ZKliCY7MOX7pWxcpD0-r-xuVVHwmKG90Hmo9_L-Rw7X13CfQ==
10. (October 21 2026) The 11th Baptist World Aid ethical fashion report, released on Tuesday, assessed the ethical practices of 138 Australian and international companies, representing 543 fashion brands. Overall, the report found that only 13% of the fashion companies surveyed could show evidence of paying a living wage to any of the workers in their supply chain. The organisation surveys companies on five broad supply chain topics, including worker empowerment and environmental sustainability, to  (theguardian.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFRQatoRT5xzLU8C17_MbfGk4OXEH5xzf15_koJ42IuP6AvFchSKoVrxDOTO_BmX7Is3f2ib8pDx45oSUWMVYxMvU7IfBC9YEAOpL1SP4sU7sdhzl_6c0PNUO_Cqa6LBJu-6vIXZSPwOFzTf2dvaig9RRgcOexOEZwU_XgY53gUB5znYFwaZ_ZzAuwRQeH_xP5p4EPstl1TVCBbpmc9-czQKO4LWjO9vTtygrLlYruneYCAmuuIZGQ==
11. (October 20 2026) Kyna IntelSustainable Fashion Resource Centre. Latest News Customize your newsletter ConferencesJob BoardAbout UsContact · Risk Insights. Latest News. Australian fashion ethical practices stalling, Baptist World Aid report finds. AbcOct 20, 20261 min read. Ethical fashion. "The biennial Baptist World Aid Ethical Fashion Report, which scores brands on sustainable and ethical practices, found brands have improved just 0.2 per cent in the past two years." Read More · Privacy Polic (kyna-intel.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHovnFr1H7CeZuZJEuexJmJvPQCbhRzos-8bobeFM9yb0Emep0hctjIViHu_mWCV6eI-hubieAiqjYvF4IYaCrnWy38_y6Y_AtHWzk9qS6amAHdgaERSs9ZyuVXdayJeZo2ynnoghfOtKAO
12. (October 21 2026) Aid and development organisation Tearfund is calling for stronger action from brands and governments to protect overseas workers making clothes and shoes sold in New Zealand. The move comes as the 2026 Ethical Fashion Report, produced by Tearfund's longstanding partner Baptist World Aid Australia, found that worker wellbeing and rights were the lowest scoring of the five assessment areas. Only 4 per cent of companies have committed to pay living wages where finished clothing an (insideretail.co.nz) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQE6ZpfvvavsZHMlP9s9fCzZLZip3SR__w4Dc5pJraVUCAK6d1IW2EgxnlBBbvFkZW2zTbVAhAtwWtdjODJdOFrDox-n9zNHzF4G0axCRmr8gzLPZ99-HS8keCIyfTe_8kug7kO8N3zb4zMz43xqIXu9rkgCCCATD0W07d36p5gOzxjE7g7jAjmrYLtR99olUApmWM1L82c8y7dLwlfQMvJ5RiAqCw==
13. (October 19 2026) 2 / 3 free articles left. Footwear, surf, skate and streetwear brands are among the worst performers on ethical production in Australian fashion, according to Baptist World Aid's latest Ethical Fashion Report. Along with ultra-fast fashion, these sectors fell well below the industry average on both worker rights and environmental practices. Baptist World Aid shared that the results revealed an urgent need for change and accountability in those categories. Denim, intimates, outd (ragtrader.com.au) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGGVgm2v0HWHUHYINRAMOOydAiro5XmYXZg_FRgC286FV0drMR6EjdwQLWeEXUzdeec89IKnxiyGmAEDWPPf2CrDhbZGJdXn_gaKLU64ti78zsVki_coEYyo8MqORN71INJo0MyN4VpUFOoVDh23v4Usk6hGfcxPA2Wj2_yiVOP4mE=
14. (October 20 2026) report it's prompted calls for the federal government to toughen up our laws to ensure Australia's fashion industry is not just sustainable. but ethical. it's an Aussie brand that strives to be sustainable. but tonight Gander Clothing has been named and shamed as one of the worst. offenders in a new ethical fashion. report we're asking the question how strong are the systems that they have in place to prevent exploitation to workers and the planet baptist World Aid assessed 138 (youtube.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGP38s9681EdNSddmVQ7ndZXiqUk_4f9_YZ7tix2G8puDbSdXdt-_WBkrZGZqohT4G3KjY1l-PhPeyN8J5Q2Qe1hESvm3FsUyVCZNgC6hZYb7qbVBz7BsRYfPKzSRxasRUTU5IqGgM=
15.  Ethical Fashion GuideSearch for a brand's ethical score.   Ethical Fashion ReportHow the fashion industry impacts people and the planet.   PodcastBehind the Barcode: the rise of ultra-fast fashion.   Listen now! (baptistworldaid.org.au) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQH1XQWT38w20uJOZbaww0PczC4O1M86-KMfPKEepCb_rLR0Dq-LqhXqc8k1mHcj66NsJ46j0KA0eA6NNtKFDB-o-uj03UzVeWwLzSaoeleoxjK1kslYevofJTue1DNCtWtHznam8lIovZv5s74wmhcRtCsSIpHnSxyimA==
16. Ghanda and Windsor Smith among lowest-rated in Baptist World Aid ethical fashion report (theguardian.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGBOTdqLUE9B3ha66nGSbCiLrVF5CecI-IIHrd9s5efvdYoAOBavCtqR6cJem8eA1UMWi_F2P8BZ_VmHfH97qp4_izL_lGvGk9lrSdC1KcxJ7lsJBxGwUiSoMYQ4pVf4wzZNDJ8z9701NNaMu9m-F3WVaUH2MiwrK41BUXTR2n0JKwDckmO6EGNDo9LBZm3j0z8qozUyX8ncsDI4fNyp7lJNpB01Ep8rpBLjoU0iS7YGYd11njj
17. Shein Scores Higher Than Many Australian Retailers in Baptist World Aid Ethical Fashion Review - Drooid (drooid.social) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGtYrZJvd98tFU2vSQwVa_oVr20CoVnU9CZiXyAjEHItsvQjlqAPEONhMA3ieCDoHnm6IIsRF9X_vYhV1oDJrHsFgQN2V8dy7KZxYwAT9mwb6TFfmQLThbB37ujbgV6bmxh6yayxeGJuhpdsxicRPv1iH37koXYQB8YLh_MjC8Fsjg4dqgcaxtz0nq0Iip7kyRm_iSjA2fLZxDb
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20. Baptist report finds fashion brands fail to show ethical commitments being met (christiandaily.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHePDovWjXNyxC8ocl9nDZTez477udPvvcTIGwfDarsSaC-jaSblWfawY30x2ZM-IQrVdXmCpk9kUhu50i0pkUqn7opISGpso2YnFIJsboAyjZXBsLoaJXT9aAYVMGtyO9j0RTU_0KVTOEOnHNsHC2WqlyQ7LWN_ZU1yHzI_nGdSNQHNh2rYjSu6gZvD0FD6SkjpyjIz8aZehZNMIQGWax70rVrQjonFLaFXYGnMzTiQpA=
21. (October 21 2026) A major Baptist report on global fashion supply chains has highlighted a persistent gap between corporate commitments and progress for garment workers, finding that 87 percent of assessed companies could not demonstrate that workers in any of their facilities were paid a living wage. The 2026 Ethical Fashion Report, published Oct. 20 by Baptist World Aid Australia, assessed 138 companies representing 543 global brands across 48 ethical and environmental indicators. Despite 93 p (christiandaily.com) — https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHBHT2eFdPJ8DESZh-fDIATpMftKmz6YmzwyHsZrgvxDHmKBzUI9vk7HbXr23qKUuALgB_d0YETIyOFwrvRaNKtJJvs-AiA9tTcrjY3jvb3UoFviGObWMZvgwh2d_Mp2qO4YB6JMk1CSb0aHMeE8VNQ5L2iaXKgqkuy9zaTDqnRQnun23SMuQ5BIifR5hfdTNUCk2-SeqgCyIEHmXXX9xHDHX8xDGltt5Qw_GNFlOjGjuje
22. Baptist report highlights gap between fashion brands' commitments and workers' rights (christiandaily.com) — https://christiandaily.com/news/baptist-report-highlights-gap-between-fashion-brands-commitments-and-workers-rights
23. Baptist World Aid Report Finds Slow Progress in Fashion Industry Ethics (gospeller.org) — https://gospeller.org/baptist-world-aid-report-finds-slow-progress-in-fashion-industry-ethics/
24. Footwear, surf brands trail on ethics (ragtrader.com.au) — https://www.ragtrader.com.au/news/footwear-surf-brands-trail-on-ethics-600000
25. 2026 Ethical Fashion Report finds minimal improvement in industry ethics (sightmagazine.com.au) — https://sightmagazine.com.au/news/2026-ethical-fashion-report-finds-minimal-improvement-in-industry-ethics
26. Advocacy (baptistworldaid.org.au) — https://www.baptistworldaid.org.au/advocacy/